Home » PC Tech & Gaming News » Sony Stock plummets by $20 Billion following landmark Microsoft deal

Sony Stock plummets by $20 Billion following landmark Microsoft deal

A long way to fall

Updated: Jan 19, 2022 9:13 pm
Sony Stock plummets by $20 Billion following landmark Microsoft deal

WePC is reader-supported. When you buy through links on our site, we may earn an affiliate commission. Prices subject to change. Learn more

A decisive blow has been struck in the console wars.  Following Microsoft’s Landmark acquisition of Activision Blizzard, Sony’s stocks have reportedly suffered a loss of $20 Billion, equating to a 13% overall loss in shares. It is the largest drop in Sony’s stock in over a decade.

Sony’s Success

Though Microsoft’s buyout of Activision Blizzard came with a hefty price-tag of $68.7 Billion, the deal may already be paying dividends. Sony’s Playstation 4 was a near-universally celebrated console, initially outstripping Microsoft’s own efforts in the same console generation. This was due in part to an over-reliance on poorly-received additions like the Kinect, and favouring being an entertainment hub over a pure gaming experience. But after more than a year in the wild, the success of Sony’s Playstation 5’s has been comparatively muted. In fact, many now consider the Xbox series X to be a very worthy competitor, if not the outright superior console.

Activision Blizzard Saved?

Microsoft aren’t the only ones reaping good fortune either. Following a precipitous drop as a result of their recent controversies, Activision Blizzard’s stock has skyrocketed increasing by 34% in the last month. This would seem to signal investor’s renewed faith in the company following the acquisition.

Sony Suffers

For a company already struggling to meet consumer demands, wrestling with scalpers and semiconductor shortages, this is unwelcome news for Sony. Microsoft has re-emerged as a significant competitor, one that is unafraid of making bold moves to shore up the breadth of their content. If they are to retain their precipitous position atop the gaming industry, Sony may well need to start taking big swings of its own. Speculation is rife for now as to how they will begin to bridge the gap, from studio acquisitions to more drastic measures. But one thing is for sure; the state of gaming is in the middle of a seismic shift in power.


Trusted Source

WePC’s mission is to be the most trusted site in tech. Our editorial content is 100% independent and we put every product we review through a rigorous testing process before telling you exactly what we think. We won’t recommend anything we wouldn’t use ourselves. Read more